Digital Payments Expand Across Latin America but Infrastructure Gaps and Trust Issues Limit Adoption

Digital payments continue to expand across Latin America and are becoming a major driver of change in the regional financial landscape. However, despite meaningful progress, infrastructure gaps and consumer distrust remain significant obstacles to broader adoption, according to the latest industry report.

The Pulso 7th Edition study, developed by Topaz and analyzed by research firm Celent, surveyed more than 1,000 financial executives from 20 countries in the region. The findings show that over half of financial institutions already support QR payments, and many are actively promoting digital wallets, biometric authentication, and instant payments — signaling growing digitalization in financial services. 

Despite these advances, the report highlights key challenges that continue to slow adoption among consumers. Limited technological infrastructure, fear of fraud, and low levels of digital literacy — especially among older adults, unbanked populations, and small businesses — are identified as the primary barriers preventing more widespread use of digital payment methods. 

Looking ahead to 2026, financial institutions are adjusting their investment priorities to address these challenges. According to the study, improving payment infrastructure, fraud prevention systems, biometric validation, and artificial intelligence capabilities are top goals for the sector as it seeks to build greater user trust and resilience. 

These trends are expected to reshape business models, promoting greater financial inclusion, new integrated services on non-financial platforms, and intensified competition among banks, fintech companies, and neobanks to deliver superior digital experiences.

While instant payments continue to gain traction, the report suggests that traditional payment instruments like cards will coexist with digital approaches as commerce evolves toward systems with lower friction and enhanced flexibility.